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  • TIPS Yields Signal New Inflation Concern [View article]
    Thanks for your feedback. Your readership is much appreciated. What I meant, and as stated in my article, was that in this unprecedented most synchronized global recession cycle, wealth & capital will be redistributed from develped coutries to developing countries. This transition will put governments in the West in a dilemma handling the resulted social and economic impact, as there's no precedent to draw experience from.

    On Jun 15 06:32 AM Clive Corcoran wrote:

    > Interesting article but you lost me in the last sentence - what exactly
    > is the capital and wealth allocation dilemma?
    Jun 15, 2009. 11:12 AM | 4 Likes Like |Link to Comment
  • TIPS Yields Signal New Inflation Concern [View article]
    Thanks for your feedback.
    You are correct that the TIPS spread of 2+% representing the market's infllation expectation. However, in my opinion and as pointed out in my article, it is grossly underestimated. Investors should be prepared for the coming inflation, which, quite possibly could reach double-digit in 5 years or so, in my view. Thanks.

    On Jun 15 09:00 AM No Free Cake wrote:

    > Surely the 2% inflation indicated by TIPS/Nominal spreads should
    > be read as a sign of low inflation expectations - not high inflation.
    >
    >
    > The recent change in the spread to this higher 2% (from nothing)
    > is simply the restoration of more typical nominal treasury yields
    > after the panic flight into them last fall.
    >
    > To me, this change doesn't indicate anything other than TIPS and
    > Treasury bond buyers are expecting low inflation and a weak economy
    > for some time.
    Jun 15, 2009. 10:24 AM | 4 Likes Like |Link to Comment
  • Rio Tinto Saved by Rally in Commodity and Equity Prices [View article]
    Rio's tie-p with BHP is not going to sit well with the Chinese. Chinese mills now are moving towards the iron ore swap market and away from the benchmark system. It will be interesting to see how this all paly out.
    Jun 7, 2009. 08:12 PM | 7 Likes Like |Link to Comment
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